Cryptocurrency, also known as crypto, has gained huge popularity in the investment community. Although crypto has been around for a long time, only recently did it gain popularity and more and more people are interested in knowing more about it. If are also someone who is interested in knowing about cryptocurrency and its benefits then stick to the end of this article.
What is Cryptocurrency?
Cryptocurrency is a currency that only exists digitally, it uses cryptography to secure the transactions. The significant difference between paper money and cryptocurrency is that it is not issued by a central authority. Instead, they are issued and protected by a decentralized system. This system protects the transactions and people from anywhere can receive or send payments. Whenever a transaction occurs using cryptocurrency it will automatically become a digital entry in the online database.
This digital entry will only consist of details of this particular transaction only making it difficult for any third party to alter the transaction. This is the reason cryptocurrencies offer the utmost security. The first cryptocurrency to ever exist is Bitcoin and most people are highly invested in cryptocurrency to generate good profits. But one thing you must remember is to only trade through legitimate trading platforms like Bitcoin . Apart from trading profits, there are many other benefits of cryptocurrency. Let’s discuss them.
Benefits of using cryptocurrency
No Frauds
As there is no centralized authority that manages or issues the cryptocurrency there is no power vested in any higher authority. Also, it is nearly impossible to change the transactions as the entire network is fully encrypted. This is why any cryptocurrency cannot be backtracked, reversed, or counterfeited by anyone. This is highly different from credit card payments as they can be reversed using the chargebacks feature. This has worked as a loophole for many people to conduct fraudulent activities.
Lower Fees
Imagine if you want to send money to a family situated in a different part of the world. Along with the money you also have to prepare a hefty transaction fee. Well! With cryptocurrency, you can rest assured that you will not have to worry about hefty fees. The transaction costs are lower compared to credit cards. Usually, there will be no transaction fees in case cryptocurrencies are exchanged as the miners will be rewarded by the network. Only when a user engages with third parties like crypto wallets then the users have to pay a small fee to the wallet company.
No Barriers
Well! Whenever you are traveling abroad it is highly important to convert your currency into their local currency. It is a hassle as you may not have enough cash and want to withdraw money. However, with cryptocurrency, this will no longer be a problem. Cryptocurrency has eliminated international barriers as people from anywhere worldwide can receive or send payments using cryptocurrency. It is necessarily easier as the cryptocurrency is more accessible and people can pay irrespective of the difference in the currencies.
No Identity Theft
One of the major risks with credit cards is that whenever you give your card to someone you are giving them access to a credit line. It is known that credit cards usually operate on a pull mechanism in which the store initiates the transaction and the payment gets pulled from your credit line. However, the cryptocurrency uses the push mechanism that gives the sender the freedom to send exactly what they want to the end user without giving out any of their information. This is why cryptocurrency reduces identity theft issues.
You have control
Whenever a bank or any central authority deems that your account is misused or has any issues with your account then naturally you would freeze the assets in your account. This can happen to anyone at any time. You will need to go through tons of processes to unfreeze your account. Although the money is yours, you will not have complete control over it. With cryptocurrency, this will not be the case if an individual who owns the currency will have a cryptocurrency over their assets as they own the private key and no one else can use it.
Fast payments
Whenever you are sending money from one part of the world to another then it is given that it will take time to complete the transaction. However, with cryptocurrencies, it will take less time. With the peer-to-peer cryptocurrency exchange, the digital currency will be directly added to the receiver’s wallet. Credit card payments can take days to be processed some time but crypto currency payments are instant. The transaction speed is one of the reasons most people have initially started taking interest in cryptocurrency.
Immediate Settlement
When you are purchasing a property there are many third parties such as notaries, and lawyers involved. This can also cause a delay in receiving payments. With cryptocurrency, the contracts can be designed to add or remove any third-party approvals. Not only in the contract one can reference external facts or complete the transactions at a future date or time for the least amount of time and expense required to finish a traditional asset transfer. Not to forget, cryptocurrency offers users security and also keeps assets safe.
In a nutshell
As you have made it to the end of this article, you would have known a lot about cryptocurrency. Although cryptocurrency may seem like a complicated matter, if you take the time and research you will find it more interesting and gain more value from it. If you want to earn money from cryptocurrency then don’t just jump into the first platform you come across or invest in the first asset that you know. Take your time and learn about the market before you jump into it. Remember digital currency is the future. Cryptocurrencies provide users full control over the money, secure the transactions, fast, and have lower fees. Only time will tell what the future holds for cryptocurrency.
